New Civil Engineer – Technology (UK)

How AI Will Reshape Fees, Teams and Competitive Dynamics

Artificial intelligence is rapidly automating routine engineering tasks that once consumed weeks, forcing consultancies to rethink the traditional billable‑hour model. Mike Rustell outlines three possible fee structures—value‑based pricing, hybrid fixed‑fee/time‑and‑materials, and commoditisation—each reflecting how AI compresses effort while liability remains. The shift also threatens mid‑level staffing, creating a "barbell" where senior judgement is prized and junior experience erodes. Smaller AI‑native firms and data‑rich contractors are poised to out‑compete legacy consultancies by offering faster, integrated services.